Yesterday's post FOMC announcement reversal- and - rally was textbook action, albeit an extraordinarily large trading range. So, it appears the market has been discounting the move.
One would naturally think that today would be an inside consolidation day, and not a spike up follow through day, because of yesterday's large range and volatility.
Bonds, gold and the dollar, indicate that investors are gun-shy, and are not ready to test risk so soon, but if the market is to "bounce" at the very least, it needs to hold the previously mentioned levels and stage a modest rally at the minimum.
The following user says Thank You to tigertrader for this post:
Another wild day for the markets. Nice sell off overnight and into the RTH open. Market then got choppy and it seemed like someone was absorbing all the orders around the 1121 - 1123 area. Market got a bounce and ran right into the 61.8% level from the overnight high where it was met with a fresh round of selling and may have squeezed out whoever was buying this up in the morning.
It now seems that every attempt to move higher is met with fierce selling. We still haven't approached yesterday's low but I wouldn't be surprised if we give that area another test.
The banks are getting absolutely beat up here. BAC, C, MS and the Vampire Squid all getting crushed today. Get ready for a liquidity crisis again. Money market funds have been transitioning out of Euro bank paper which will cause a huge liquidity disruption in Europe. This can easily make it's way over to the US.
Last edited by Private Banker; August 10th, 2011 at 04:42 PM.
The following 3 users say Thank You to Private Banker for this post:
You're making me complacent! I don't even need to open my own charts, I know I can just wait for your post at the end of the day.... Thanks for your contributions!
I had a dentist appointment today, and did not get back in time. It's depressing to see what I missed... I barely caught the last wave down, though. But I should have just pulled the tooth myself and been ready from the get-go...
The following user says Thank You to Lornz for this post:
I am in my late 20s, and trade my own account full-time. I've been trading (in various forms) for 8 years. I also just embarked on a BSc in Mathematical Finance; I have been toying with the idea of doing something more with my trading...